Chicken sales triple Tyson's profit
Aug 5 - Stronger demand and higher prices for chicken and beef fueled profit at Tyson Foods, but pork sales dropped. Fred Katayama reports.
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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Consumers' big appetite for chicken and beef helped triple profit at Tyson Foods. Quarterly net income at the U.S.' largest meat processor rose to $249 million. Price hikes, especially for breast meat, more than offset the increase in feed costs for chicken. Tyson was also able to fatten its profit margins for beef and poultry. CEO Donnie Smith said, "As expected, we are delivering robust results in the second half of our fiscal year." The one downer: pork sales dropped nearly 5 percent as exports fell. Tyson's shares rose sharply on the report, adding to its 47 percent rally this year. The stock has nearly doubled over the last 12 months. The food processing sector is particularly attractive to foreign investors. Chinese and Brazilian companies are buying Tyson's rivals, Smithfield Foods and Pilgrim's Pride. Investors may have more reason to be bullish. Tyson expects feed costs to drop in the next fiscal year, helping boost profitability. Stronger demand and higher prices for chicken and beef fueled profit at Tyson Foods, but pork sales dropped. Fred Katayama reports.